SkyWest Airlines will fly for discount carrier AirTran Airways under an unusual partnership that allows SkyWest to operate under its own brand for the first time in years instead of the colors of its partner.
SkyWest and AirTran claim the arrangement is unique. It also permits the two carriers to share revenue while allowing SkyWest to use AirTran's booking tools to sell seats and permitting AirTran to expand into new markets without using its own aircraft.
"That really is the best of both worlds," SkyWest President Chip Childs said.
Both airlines announced the marketing partnership one day before SkyWest Inc., the St. George-based parent of SkyWest Airlines, is set to report its third-quarter financial results. Previous quarters have been hurt because SkyWest partners have been cutting back their schedules to cope with the weak economy.
Under a more traditional relationship, a contract carrier paints its aircraft in its partner's colors and operates under the partner's brand --- as does SkyWest, which also flies as United Express for United Airlines and Delta Connection for Delta Air Lines.
Contract carriers also are typically reimbursed for their fuel expenses. Marketing, fares, customer service and other tasks are also the responsibility of the partner airline.
Not so in this case.
"This is not one carrier operating on behalf of another. It is a true partnership with revenue-sharing and other benefits to both SkyWest and AirTran," Christopher White, spokesman for Orlando, Fla.-based AirTran, said.
"We thought it was very important to be transparent with the public, so we are not going to paint planes or put SkyWest employees in AirTran uniforms. This is a partnership of two separate companies," White said.
Financial terms of the partnership were kept confidential. The deal calls for St. SkyWest to operate five 50-seat CRJ200 regional jets between Milwaukee, Wis.'s airport and six destinations.
White said Milwaukee is one of AirTran's focus cities. The arrangement with SkyWest permits it to launch new service from Milwaukee to Akron, Ohio; Des Moines, Iowa; and Omaha, Neb., with SkyWest aircraft.
AirTran will also expand daily flights from Milwaukee to Indianapolis, Ind.; Pittsburgh and St. Louis, again with SkyWest jets.
At the same time, the partnership frees up AirTran aircraft for a new route from Milwaukee to Dallas-Fort Worth International Airport and more flights to Ronald Reagan Washington National Airport in Washington, D.C.
The partnership "allows us to greatly enhance our offerings to people all over the Midwest," White said. "For example, people in Des Moines can be connected to virtually the entire AirTran network" without AirTran having to provide planes to the market.
The new routes and flights will be phased in between Dec. 4 and Feb. 11.
